Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 3MC
Which of the following is a disadvantage of the
A. limited life
B. no
C. flexibility in business operations
D. combining of financial resources
Expert Solution & Answer
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Students have asked these similar questions
Which of the following is true?
a.
Owner in sole proprietorship has less responsibility in running his business compared to partnership
b.
The liability for sole proprietorship is limited compared to partnership
c.
The sole proprietorship business has unlimited growth potential compared to partnership
d.
The owner of sole proprietorship has less available capital compared to partnership
_____________ is a disadvantage of Partnership.
a.
Potential disagreements between partners
b.
Great range of skills
c.
Shared responsibilities
d.
More capital
Agency problems would be less likely to exist in a:
sole proprietorship.
partnership.
private company.
public company.
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
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Similar questions
- Which one of the following would not be considered in the development of a partnership agreement? A. profit and loss levels B. processing disputes C. stock options D. asset contributionsarrow_forwardBeing in a business of partnership: O a. Increases Individual risk O b. None of these O c. Does not involves any individual risk d. Decreases Individual riskarrow_forwardWhich one of the following would not be considered a disadvantage of the partnership form of organization?* O Limited life Unlimited liability O Mutual agency O Ease of formationarrow_forward
- Which of the following is a reason to use a partnership as the legal form of a business? A. Partnerships avoid the difficulty of raising capital. B. Partnerships avoid the issue of mutual agency. C. Partnerships avoid the issue of double-taxation faced by corporations. D. Partnerships avoid the issue of unlimited liability.arrow_forwardPartnership is the economic relationship between two or more persons: a. Who will not pay goodwill b. Who have agreed to not to share profit c. Who will not contribute capital d. Who have agreed to share profitarrow_forwardWhich of the following is a false statement about a partnership? O A. It is an opportunity to pool talents and resources for the company. B. A partnership must have at least two owners. OC. It is a business with two or more owners that is not organized as a corporation. OD. It is a type of corporation in which the owners have limited liability for the organization's liabilities.arrow_forward
- Explain the advantages and disadvantages of the partnership versus the corporate form of business.arrow_forwardThe partnership form of organization a. Avoids the double taxation of earnings and dividends found in the corporate form of organization b. Usually provides limited liability to the partners c. Has unlimited life d. Simplifies decision makingarrow_forward1. Dissolution of a partnership: A. implies that the business operations will halt. B. occurs when there is any change in the members of the partnership. C. implies that the business cannot continue with a new group of partners. D. implies that the business cannot form a different ownership structure. 2. In comparison with the single proprietorship form of organization, the partnership form offers which of the following advantages? A. simple transfer of interest in the partnership to outsiders. B. combination of ability and experience of the partners. C. legal liability of each partner for all the debts of the partnership. D. limited lifearrow_forward
- Define the difference between a proprietorship and a partnership. What are the advantages and disadvantages of a proprietorship and a partnership? (PLEASE DONT PROVIDE PICTURES FOR ANSWER THANK YOU)arrow_forwardA capitalist partner is not allowed to enter into a new partnership if it is a competing business. What fiduciary duty is applied? Duty of diligence Duty of obedience Duty to inform Duty of loyaltyarrow_forwardWhat characteristics of a partnership justify the absorption by the other partners of the deficiency that cannot be made good by an insolvent partner? a. Limited life and mutual agency b. Limited life and co-ownership of property c. Mutual agency and partnership non-taxability d. Mutual agency and unlimited liabilityarrow_forward
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